
Marvxrp
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Did you see? https://arstechnica.com/information-technology/2019/11/password-data-dumped-online-for-2-2-million-users-of-currency-and-gaming-sites/ In October 2019, 1.4M accounts from the cryptocurrency wallet service GateHub were posted to a popular hacking forum. GateHub had previously acknowledged a data breach in June, albeit with a smaller number of impacted accounts. Data from the breach included email addresses, mnemonic phrases, wallet hashes and passwords stored as bcrypt hashes. Hacked : Cryptocurrency wallet hashes, Email addresses, Mnemonic phrases
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In Order to access the wallet you need the secret key. The secret key has to be stored on the server. With your login creditinals you can decrypt it and access your Wallet. Without it stored on the server you would have to type in it everytime. Thats my understanding. The problem seems that these encrypted keys were very weak encryptet.